The diagram illustrates aggregate demand (AD) and aggregate supply (AS). A shift occurs from AD1 to AD2 and from AS1 to AS2. Consequently, the equilibrium level of national income changes from:
- AY1 to Y3
- BY1 to Y4
- CY2 to Y3
- DY2 to Y4
Economics 9708 · AS & A Level · Economic growth
The diagram illustrates aggregate demand (AD) and aggregate supply (AS). A shift occurs from AD1 to AD2 and from AS1 to AS2. Consequently, the equilibrium level of national income changes from: